Based on an analysis of industrial cluster this paper defines the ind ustrial cluster a new kind of organization mode of spatial economy that is diffe rent from market and hierarchy system.On one hand relying on the analysis of stu dy curve and the regional resource organization capability the paper points out the positive market advantage of industrial cluster.On the other hand based on t he analysis of lemon problems and negative externalism the paper presents positi ve market competitiveness of industrial cluster.The paper draws out the inner re ason why the industrial cluster can have sustainable development while describin g clearly the key to carry out a cluster strategy in developing local economy.